Titoli di Stato area Euro GRECIA Operativo titoli di stato - Cap. 1 (6 lettori)

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tommy271

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Markets Call Inert EU For Solutions



Consultations on the competitiveness pact reach their peak on Thursday, just a day before the Extraordinary European Summit. Greek Prime Minister George Papandreou meets today afternoon French President Nicolas Sarkozy, in an attempt to obtain an even indirect promise of an adjustment that would facilitate the restructuring of Greek debt through the European rescue fund.

Papandreou’s meeting with the President of European Council Herman Van Rompuy didn’t provide any news as the only alterations to the original proposal of the Franco-German axis regard the involvent of the European Commission in the implementation of the package and not a substantial change in the terms of the fiscal policy.

The market sentiment has worsened lately, while Portugal is considered to be a step ahead of asking for a bailout loan, as the loaning cost has exceeded 7.5 points and makes it impossible to borrow from the markets. Similarly, CDS of Greece and Ireland point out the possibility of about 60% for a default.

Slovakian Prime Minister Iveta Radicova, having already refused to participate in lending to Greece, stated that Eurozone should be prepared to face the default of a Euro country. She also said that Slovakia would accept the strengthening of EFSF, provided that it would not be used to buy back bonds.

European Union sources note that there is a limited possibility for definitive developments in the European Summit on Friday and decisions are expected to be postponed until late March.

(capital.gr)
 

tommy271

Forumer storico
Greece Default Bets Mount



Investors increase bets that Greece, Ireland and Portugal may restructure their debts as they become more discriminating about European creditworthiness, according to Bloomberg.

The average annual cost of protecting of Greek, Irish and Portuguese bonds in the credit-default swaps market for five years exceeded the average of Spanish and Italian contracts by a record $496,000 this week.

That’s up from $384,000 on Feb. 2 and $77,000 a year ago. Swaps on Greece signal a 60 percent probability of default in five years, while Spain and Italy survive the euro region’s deficit crisis.

Following Greece’s downgrade by Moody’s earlier this week, the division between peripheral nations widened and fueled speculation that the European Union will fail to agree on a comprehensive package to end the crisis, said Bloomberg.

Traders are betting Spain will avert an EU bailout as budget cuts and growth help repair its balance sheet.

Although Moody’s cut Spain’s credit rating on Thursday, the country’s growth trajectory “looks more reassuring than that of Greece and Portugal”, according to Moody’s analysts.

“We think that Portugal is likely to double-dip, while growth in Greece should remain in negative territory”, they added.

Investors note that Greece will inflict losses of about 50% on investors and extend bond maturities by 5-10 years in a series of moves to reduce its debt, according to Bloomberg.

(capital.gr)
 
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